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Credit cards funding daily living

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Millions of people have started the New Year depending on credit for day-to-day living costs, according to a new report.

The third annual Post Office Consumer Credit Report reveals more than 12 million adults plan on using their credit card in January for daily purchases like food shopping.

That's an eight per cent increase on last year, which is claimed to reflect the recession's impact on our finances. Many more are set to suffer financially well into 2010 the report says.

The Post Office says it's still worth shopping around if you need a credit card, especially if you have a high APR.

"By taking advantage of any zero per cent features still available or by switching to a card that will charge you a lower rate of interest", the Post Office says, you can pay your debt off more quickly.

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